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Retirement

Bob McC said:
Don’t forget that if at anytime you were opted out of SERPS or S2P you won’t get the full State pension.
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Thanks Bob I have had State Pension Forecast in the last month or so and its pretty much saying 9K my partner already gets hers and that pretty much 9k too

I only responded to the thread because having gone through the exercise with my FA very recently I thought some of the costs for maintaining the home appeared a bit high compared to my figures.
 
I don’t expect a state pension come retirement so I opened a SIPP many years ago. I’d recommend anyone with a child to open a private pension for them. 50p a day from an early age can make an enormous difference. The key is to start as early as possible. Your pot has not only tax relief but remains sheltered until you withdraw, 25% of the pot can be taken tax free which is a nice option to have as well.

Rules and further caps may apply as the rich took advantage of this - borrowing from their mortgage to live and slamming all earnings into a pension for the tax relief. Albeit at the risk of generating more gain than the cost of borrowing! This effectively allowed my mum to retire at 54. Opening a pension at the age of 18 seems overlooked.

There are plenty of pension calculators online. The results may shock you. Back in the day when I looked, Hargreaves & Lansdown were the ‘go-to’ company at the time. I’m still with them now. Transferring your private pot to other companies is easy FWIW.
 
The state pension is a no brainier if you have any missing years get them paid up. You can go back 6 years.
 
Bob McC said:
Don’t forget that if at anytime you were opted out of SERPS or S2P you won’t get the full State pension.
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Don't I know it! Every year the goons calculate my pension from several sources from over the years that comes out around £10K pa. Then they gleefully take off around £3K for this.

However that was invested in my various pensions so it isn't actually lost.

Cheers,

DV
 
wylton said:
In one of the earlier posts, somebody mentioned having £2k/month for a retirement budget; plenty of people don't have that as a total income for the household during the whole of their working life!
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Indeed, If the average income from employment is say £28K then after NIC, Tax, Pension, some for savings, transport to work etc and then then rent/mortgage they probably have far less disposable income on which to raise a family.

By the looks of it some on pfm seem to live very well compared to most.

Cheers,

DV
 
Bob McC said:
That’s what they tell you...
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Its been a while but I seem to remember I was 'opted out' when I was a teacher and now I get a teachers pension and also had a lump sum so its probably in that scheme. Anywho ta very much TP every little helps.

Cheers,

DV
 
Pedro83 said:
I don’t expect a state pension come retirement so I opened a SIPP many years ago. I’d recommend anyone with a child to open a private pension for them. 50p a day from an early age can make an enormous difference. The key is to start as early as possible. Your pot has not only tax relief but remains sheltered until you withdraw, 25% of the pot can be taken tax free which is a nice option to have as well.

Rules and further caps may apply as the rich took advantage of this - borrowing from their mortgage to live and slamming all earnings into a pension for the tax relief. Albeit at the risk of generating more gain than the cost of borrowing! This effectively allowed my mum to retire at 54. Opening a pension at the age of 18 seems overlooked.

There are plenty of pension calculators online. The results may shock you. Back in the day when I looked, Hargreaves & Lansdown were the ‘go-to’ company at the time. I’m still with them now. Transferring your private pot to other companies is easy FWIW.
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highly agree with opening pension for kids, my oldest is 30 and that pension we took out at 3 years of age has been growing at 10% in recent years and they have 4 pensions each
 
darrenyeats said:
Essential, really?
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Absolutely

Health Care
1000​
Food
1200​
Wine
120​
Occasional Beer
250​
Oil
200​
Electricity
80​
Water
30​
Property Tax
350​
Maintenance
250​
Car
800​
Insurance
140​
Insurance
160​
Petrol
250​
Clothes
350​
Pool
90​
Holidays
500​
Media
230​
 
That’s about twelve quid a day for 3 units each day. That’s either hotel beer prices or fine wine? Anyhow, seems expensive as does the rest of your list.
 
Wow. I spend around that on total supermarket groceries feeding a family of four (including two strapping lads). Minimising extraneous spend allows me to indulge in this hobby and prepare for retirement. Back on topic of retiring, I met with an IFA to plan for my retirement yesterday. Basically he told me that I didn't need my other IFAs who "look after my SIPPS" (and charge me 0.5% for that "service"). This is because I am happy with a low cost platform and existing fund portfolio, and to use monies saved to pay for good tax advice with potential looming redundancy (and retirement opportunity thereafter).
 
blossomchris said:
I would guess a total pension of 24k for a couple would be on the low side here. What are your expected pension amounts?
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My personal situation isn't really relevant in this context, but I'll be north of your figure by a good margin, due to hard work and due diligence, but I think that there are many folk on this thread that aren't in touch with the real world TBH.
 
Cos of course anyone who hasn’t got a decent pension was a feckless wastrel weren’t they..
If only they had worked hard and shown due diligence (whatever that is).
 
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